Who will build the Czech nuclear power plant? Daewoo Engineering & Construction formally asks the government to mediate renegotiations

[Financial News] Daewoo Engineering & Construction has formally requested renegotiation of the construction contract for the Czech nuclear power plant, with mediation by the Ministry of Trade, Industry and Energy. It says it may be difficult to find a construction company willing to bear the risks under Korea Hydro & Nuclear Power (KHNP)’s terms, potentially weakening the country’s competitiveness.
On the 2nd, Daewoo Engineering & Construction said, “We regret KHNP’s unilateral notice that it is ending contract negotiations,” adding, “We request renegotiations to get the Czech Republic’s new nuclear power plant project back on track.”
Daewoo Engineering & Construction had earlier received notice from KHNP on October 30 that negotiations were ending over disagreements related to construction costs. According to Daewoo, KHNP’s letter contained unreasonable terms requiring a construction contractor not responsible for the design to accept a substantial increase in construction volume without any change in construction costs, and to bear the cost of work added after the bid without any cost adjustment.
It also argued that this underscored a structure in which the contractor bears the entire risk of building the APR1000—a new reactor design being built for the first time anywhere in the world—in Europe, a new market.
Daewoo Engineering & Construction said it had invested substantial sums in construction work and permitting procedures after receiving an “instruction to commence preliminary work” from KHNP, following the signing of the main contract in June 2025 between the Czech client and KHNP, the prime contractor.
The company said it had deployed dozens of personnel and material resources upfront, without settlement, at a cost of several tens of billions of won, across locations including the Czech Republic, Gyeongju, where KHNP is based, and Seoul, where Daewoo Engineering & Construction is headquartered.
A company official said, “Many also believe there is a high risk of legal disputes if a contractor that has spent eight years as part of Team Korea participating in bidding, winning contracts, construction work and permitting is told unilaterally that negotiations have collapsed and steps are taken to terminate the agreement.”
The official continued, “We at Daewoo Engineering & Construction ask the Ministry of Trade, Industry and Energy to directly review the past negotiations with KHNP, the prime contractor, and examine the construction consortium’s final proposal, then step in to mediate renegotiations.” The official emphasized, “If the government steps in directly to mediate renegotiation of the construction contract, we expect it will reduce the risks our country may have to bear and reassure the Czech client.”
[email protected] Lee Jong-bae Reporter